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Delhi Wine Club

Posted: Fri, Jun 22 2007. 5:00 PM

Russian ban on Moldova Wines to be lifted soon

The 15-month ban on wines from Maldova into Russia seems to be ready to be lifted though it may be a couple of months before the wines can actually be exported. It remains to be seen if it will pull out the Moldovan wine industry in crisis, back to its feet.

That man, damn Putin; Killer of Moldovan Dream (sung to the tune of RaRaRasputin-by Boney M)

Killing me softly, with his ban (Roberta Flack… Killing me softly with his song).

I can almost hear the wine producers in Moldova humming the above two songs with frustration and angst. It has been 5 months since Russia was due to lift the ban imposed in March 2006 on wine imports from Moldova , an erstwhile USSR State. With no exports to Russia and restricted supplies when allowed, the wine industry is in deep crisis.

Although Moldovan president Vladimir Voronin has signed an agreement with Vladimir Putin to ensure the resumption of sales to the Russian market, the Russian Ministry of Agriculture has yet to confirm. It will be at least another month or two until the first shipments can take place.

The Russian ban on Moldovan wines dating to last March on the supposed grounds of health concerns hit producers hard. Their total imports were halved, to $173 million in 2006. The Russian wine market was long dominated by Moldovan wines, mainly in the entry level and medium price brackets. Whether Moldova will be able to recover lost ground remains to be seen.

It appears that all Moldovan wines and spirits will now have to go through a single export window. According to the Russian business daily Kommersant, the Russian Ministry of Agriculture held a tender in April. Thereafter, the federal public enterprise Soyuzplodimport appointed an authorized importer of Moldovan wines and spirits to Russia.

Russians are known for their stringent laws on import of liquor and wines. During my various trips abroad the Russian journalists and importers have always rued the strange policies of their government

For instance, a new liquor legislation, introduced last year, stipulates that the new excise stamps with unique bar-codes must be used for all bottled alcohol products sold within the country. The products with the old stamps were only allowed for import into Russia till April 1 and have to be sold in retail before July 1.

During many of our talks with Indian exporters, they are extremely shy of taking part in any wine or liquor export activity to Russia. I know of a case where the Italian wine samples sent from Sardegna well on time for a competition did not reach a month after the competition was over and the wines for the wine show had actually arrived, making the producer feel frustrated and furious.

Perhaps, Moldova is a victim of the dark red tape?!

Russia may be the emerging market but their policies are not going to be help to any wine producing nation, the growing size of the market notwithstanding

Subhash Arora

June 22, 2007

Source: http://www.decanter.com

For an earlier article, click http://www.indianwineacademy.com

 
 
 

 
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